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Question
Cash Flow Data for Interceptors, Inc.
| 2015 | 2016 | 2017 | 2018 | |||||||||||||||||
| Cash | $ | 35 | $ | 40 | $ | 45 | $ | 50 | ||||||||||||
| Cash from Operations | $ | 127 | $ | 125 | $ | 122 | $ | 117 | ||||||||||||
| Net Capital Spending | $ | 140 | $ | 130 | $ | 140 | $ | 145 | ||||||||||||
| Cash from Financing | $ | 18 | $ | 15 | $ | 23 | ||||||||||||||
Based on the cash flow data in the table for Interceptors Inc., which of the following statements is (are) correct?
I. This firm appears to be a good investment because of its steady growth in cash.
II. This firm has been able to generate growing cash flows only by borrowing or selling equity to offset declining operating cash flows.
III. Financing activities have been increasingly important for this firm's operations, at least in the short run.
A) I only
B) II and III only
C) II only
D) I and II only
Answer
This answer is hidden. It contains 1 characters.
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